Upbit endures with new listings, but…coin market liquidity is 'depleted'

▲ Upbit Coin Market, Investment Sentiment Rapidly Cooling/AI Generated Image ©

As geopolitical risks re-emerged due to concerns over Iran's blockade of the Strait of Hormuz and the New York stock market turned downwards, the domestic cryptocurrency market also experienced downward pressure and fell into a strong wait-and-see attitude.

According to Upbit, the nation's top cryptocurrency exchange, as of 7:40 AM on August 7, the leading cryptocurrency Bitcoin (BTC) was trading at 91,356,000 won, down 0.41% from the previous day, barely holding onto the 91 million won mark. Ethereum (ETH) also fell by 0.11% to 2,702,000 won, and XRP (Ripple) dropped by 2.45% to 1,471 won, indicating a general weakness across major cryptocurrencies. The Upbit Composite Index also declined by 0.41% to 9,416.65, and the Altcoin Index fell by 0.77%, failing to escape the bearish trend.

The main reason for this market downturn is the deterioration of macroeconomic investment sentiment due to geopolitical uncertainties. News that the Iranian parliament is pushing for a bill to completely ban US and Israeli ships from passing through the Strait of Hormuz caused international oil prices (Brent crude futures up 3.8%) to surge, leading major New York stock indexes, including the Dow Jones Industrial Average 30, to close down by 0.85%. In addition, profit-taking outflows due to the receding performance outlooks for major semiconductor stocks such as SanDisk, Western Digital, and Micron further dampened investment sentiment for risk assets across the board.

The drought in trading volume also continues. According to Upbit Datalab, the 24-hour trading volume increased by 10.22% from the previous day to 733.38 billion won, but the daily trading volume remained at 709.724 billion won, still failing to surpass the 1 trillion won mark. Facing a severe trading cliff compared to its boom period, Upbit has recently been increasing new coin listings, putting its efforts into recovering trading volume. Indeed, newly listed CAP recently recorded a trading volume of 40.7 billion won in an instant, rising to the second rank overall, clearly showing a shift of funds towards new listings.

Even in the bearish market, selective surges in some small and medium-sized altcoins continued. Zerobase (ZBT) surged by 45.00% from the previous day to trade at 261 won, bringing in 46 billion won in trading volume, while DeFiApp (HOME) and Momentum (MMT) also rose by 9.76% and 9.87% respectively, indicating individual favorable rotational trading unrelated to the overall market trend. On a weekly basis, Zerobase recorded high volatility with a 56.63% increase, and Ada (ADA) rose by 20.92%.

Regarding future prospects, the disappearance of geopolitical risks and the announcement of macroeconomic indicators are expected to be decisive variables. Market experts unanimously state that with accumulated headline fatigue related to the Strait of Hormuz and the inherently dry liquidity, it is difficult to expect a clear rebound in large-cap stocks for the time being. Although exchanges are trying to attract liquidity through new listings, without fundamental improvements in macroeconomic liquidity, a boring sideways movement within a box range and some short-term rotational trading are expected to continue.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*